Barangaroo South Image Source: Peter Hindmarsh

James Packer and Crown Limited’s plans to construct a 350-room hotel complex at Barangaroo on Sydney Harbour is “exactly the kind of targeted iconic accommodation facility this city needs”, according to Tourism Accommodation Australia (NSW) director Carol Giuseppi.

It was reported Mr Packer and Crown Limited had signed an Exclusive Dealing Agreement with construction company Lend Lease to develop the new property in Sydney.

“The Crown Limited hotel would be built with a direct market in mind – that is the kind of development we need, development that is sustainable and will add to Sydney’s image as Australia’s premier city,” Ms Giuseppi said.

Ms Giuseppi said the new hotel would complement Sydney’s already premier accommodation facilities, including the recently refurbished $60 million Park Hyatt.

“Not only do we have the luxurious refurbishment of the Park Hyatt and the opening of The Darling at The Star last year, we have major refurbishments at: Four Seasons, Novotel Rockford Darling Harbour, Hyde Park Inn, Holiday Inn Darling Harbour, The Castlereagh Boutique Hotel, The Shangri La, Hilton Sydney, Radisson Hotel & Suites, Sydney Marriott Hotel, Swissotel and the Four Points by Sheraton,” she said.

The Langham Hospitality Group has purchased The Observatory Hotel and will purportedly invest millions on upgrading the property.

“For the first time in more than a decade Sydney hotels are in a position where investors are  prepared to invest millions of dollars on refurbishments, ensuring that Sydney retains its  position on the travel itineraries of the world’s most discerning travellers,” Ms Giuseppi said.

Crown Limited also announced plans to construct a new six-star luxury hotel in Perth, Western Australia.

“Both developments will provide a much-needed boost to Sydney and Perth’s tourism offerings thus it is vital that planning approval processes do not impede on timely progress on these iconic projects,” Accommodation Association of Australia chief Richard Munro said.

“The establishments will assist in servicing the increasing demand for accommodation in both Sydney and Perth as well as contribute to the nationwide target set by Tourism Australia for an additional 40,000 - 70,000 new accommodation rooms by 2020.”